In 2022, the UK’s unemployment rate fell to a near 50-year low of 3.5%, yet the economy faced stagnant real GDP growth, high inflation, and a significant rise in economic inactivity due to long-term sickness. Some analysts argued that this extremely low unemployment rate was not a sign of economic strength, but rather masked deep-seated structural weaknesses and supply-side constraints.
Evaluate the view that achieving and maintaining a very low rate of unemployment is always desirable for an economy.
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.